Markets Update: Energy and Metal Futures on the Rise - Dollar Continues to Depreciate

by Andrea Unger

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This past week was marked by positive returns in most markets. 

Equities finally rebounded, with gains of to 5 percentage points for the S&P500 and Nasdaq and a reduction in short-term volatility. Bonds, Metals, and Meat futures also continued to rise.

In contrast, some soft commodities, such as Cotton and Sugar, and the Grains sector moved down. The Dollar is also weak, depreciating against all other currencies.

For more on how markets are moving and volatility trends, don't miss our weekly overview!

Enjoy the video!

Transcription

Hey everyone and welcome back to another video! One of the coaches at Unger Academy here, and today, as usual, we're going to be seeing together how the markets moved over the past days.

Alright, so let's start right away with U.S. stock indexes, which, as you can see, have been experiencing a rebound in the last four to five days that even hovers around 5% for both the Standard and Poor's 500 and the Nasdaq. It appears to be a retracement. Let's just hope that this isn't what they call a "dead cat bounce" in a bear market.

Move on to the bond market, where we see that the 30-year bond seems to be pursuing this trend that started last month.

The 10-year bond also did very well, continuing in its uptrend.

As for the Energy markets, we see that Crude Oil marked a +7%, returning almost to the levels that it had touched just after the outbreak of the conflict between Ukraine and Russia.

Very high returns also for Heating Oil, which is also climbing toward the highs of the recent period.

As for the Metals market, there's a bullish trend continuing here as well. It is less pronounced than in the previous week, however, as you can see, this market is clearly recovering from the lows that it touched in mid-May.

Move on to the Meat market, which has also been rising in the short run but remains negative in the long run. However, also in this case, we can see a nice rebound that started around mid-May.

On the other hand, we have got mixed returns on soft commodities. I'd like to mention, in particular, Orange Juice, which is making +5% this week alone, taking it to very high levels over the last period.

On to the Cereals, the Grains market, where we see virtually only negative returns, except for Soybeans, which made a strong rally, returning to its post-Ukrainian-Russian conflict all-time highs.

Then we have currencies, which also continued rising after reaching remarkable lows in the past weeks. So, we have a depreciation of the dollar against all major currencies, from the Yen to the Australian Dollar.

And finally, on to the cryptocurrency market. Bitcoin, in particular, is still in the trading range that started at the beginning of May and shows a fairly low and controlled volatility compared to the levels that we usually see in this market.

Let's take a look at the term structure of implied volatility. The positive returns made by stock indexes during recent days caused short-term volatility to decrease significantly, and we can also see that this is affecting longer-term volatility.

As for the Vix… We know that over the last period it has been steady above 30 points, but now it is back below 26 points.

Let's close now, as always, with the rollover schedule. So at the end of week, we'll have to rollover the Bund, along with all the currencies in the U.S. market, ranging from the Australian Dollar to the British Pound and to the Swiss Franc.

And with that, our video is over! However, before I say goodbye, I’d like to leave you with a little tip. If you're interested in systematic trading, take a look at the link in the description of this video. It will take you to a page where you can find some very useful resources. Indeed, from there you'll be able to register for a free presentation given by Andrea Unger or get our best-selling book, "The Unger Method," covering only the shipping costs. Finally, you'll also be able to book a call with a member of our team to get a strategic consultation, also free of charge, of course.

Finally, please remember to subscribe to our channel and click on the bell to stay updated on the release of all our new videos and our content.

Thank you so much! Have a great weekend and we will see you soon next week, bye-bye!

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Andrea Unger

Andrea Unger here and I help retail traders to improve their trading, scientifically. I went from being a cog in the machine in a multinational company to the only 4-Time World Trading Champion in a little more than 10 years.

I've been a professional trader since 2001 and in 2008 I became World Champion using just 4 automated trading systems. 

In 2015 I founded Unger Academy, where I teach my method of developing effecting trading strategies: a scientific, replicable and universal method, based on numbers and statistics, not hunches, which led me and my students to become Champions again and again.

Now I'm here to help you learn how to develop your own strategies, autonomously. This channel will help you improve your trading, know the markets better, and apply the scientific method to financial markets.

Becoming a trader is harder than you think, but if you have passion, will, and sufficient capital, you'll learn how to code and develop effective strategies, manage risk, and diversify a portfolio of trading systems to greatly improve your chances of becoming successful.